The EUR/MXN pair is showing signs of recovery, with an interesting possibility of appreciation of the Euro against the Mexican Peso. In this analysis, we will explore a LONG strategy, with an entry point at 21.80, based on technical and fundamental considerations.
Position parameters:
Take Profit (TP): 22.80
Stop Loss (SL): 21.46
Trend analysis and motivations for LONG:
The Euro is showing a certain degree of stability thanks to the monetary policy of the ECB and the improving economic outlook in the Eurozone. On the other hand, the Mexican Peso could be pressured by the volatility of emerging markets and the decisions of Banxico on interest rates.
Graphically, the 21.80 level has acted as a key support, suggesting a favorable area for the opening of a LONG position. The 22.80 target represents a significant resistance, tested in previous market phases. If the bullish momentum is maintained, this level could be reached with a gradual progression.
Risk management and operational outlook:
The Stop Loss is positioned at 21.46, a point that could indicate a bearish breakout if reached. The risk/reward ratio appears balanced, allowing a prudent management of the position without exposing the capital to excessive risks.
Conclusion:
The LONG strategy on EUR/MXN is supported by technical and macroeconomic factors that indicate a possible revaluation of the Euro in the short-medium term. Monitoring global economic developments and central bank decisions will be essential to confirm the validity of this approach.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.